Beach Energy Provides Dec Drilling Report, Australia

Beach Energy Limited has released the following monthly drilling report for December 2013.

Nappamerri Trough Natural Gas

In PEL 218 (Beach Energy 70% and operator, Chevron Australia Exploration 1 30%), the Boston-3 horizontal well was cased and suspended and the rig was released on 3 December 2013.

The drilling campaign in the Nappamerri Trough in ATP 855 (Beach 46.9% and operator, Icon Energy Ltd 35.1%, Chevron 18%) continued in December 2013. Geoffrey-1 vertical exploration well reached a total depth of 4,124 metres on 9 December 2013. High levels of gas were encountered in the Permian section. Redland-1, a vertical exploration well, was spudded on 15 December 2013 and is currently running and cementing intermediate casing. Redland-1 will target the Toolachee and Daralingie Formations in a structurally deep location in the Nappamerri Trough.

Cooper Basin Oil and Gas – Exploration and Development

In the gas exploration program in Queensland, the Marama West-1 well (Beach 23.8%, Santos 61.2% and operator, Origin Energy Resources 10%) was drilled to a total depth of 3,028 metres and cased and suspended as a Wimma Sandstone Member, Paning Member, Toolachee Formation and Basement gas discovery. Marama West -1 was the third well of a three well gas exploration program, consisting of Bolah-1, Kaiden -1 and Marama West-1. All three wells were gas discoveries.

In the gas development program in Queensland (Beach 23.2%, Santos 60.06% and operator, Origin 16.5%, Australian Pacific LNG 0.24%), a three well drilling program has commenced on the Barrolka Field targeting the Toolachee Formation. Surface hole has been drilled at Barrolka-11 (total depth 880 metres), Barrolka-12 (total depth 880 metres) and Barrolka-13 (total depth 880 metres). Production hole will now be drilled at each location commencing with Barrolka-12.

In the South Australian Cooper Basin Joint Venture (SACB JV) (Beach 20.21%, Santos 66.6% and operator, Origin 13.19%) gas development program, the Moomba-197 well was drilled to a total depth of 3,166 metres and was cased and suspended as a Toolachee/Daralingie/Epsilon/Patchawarra gas producer. The Moomba-197 well is a stand-alone conventional vertical well on the Moomba North Field located approximately two kilometres from the Moomba North Pad. On the four well Moomba North Pad, the program was completed with the drilling of the Moomba-200 and Moomba- 201 wells. Moomba-200 was drilled to a total depth of 3,184 metres and Moomba-201 was drilled to a total depth of 3,370 metres. Both wells were cased and suspended as Toolachee/Daralingie/Epsilon/Patchawarra gas producers. Moomba-202 is drilling ahead at 1,066 metres. This is a vertical well on the south part of the Moomba Field.

Big Lake-97 the third of five wells on the Big Lake well pad is currently drilling ahead at 2,542 metres. Big Lake-95 was drilled to a total depth of 3,126 metres and Big Lake-96 was drilled to a total depth of 2,997 metres. Both these wells were cased and suspended as Toolachee/Epsilon/Patchawarra/ Tirrawarra gas producers.

In the SACB JV unconventional gas appraisal program, the Roswell-2 horizontal well in the Roseneath Shale was drilled to a total depth of 3,481 metres and has been cased and suspended for future fracture stimulation of the ~550 metre horizontal section of the Roseneath Shale drilled in this well.

Roswell-2 will be subject to surface microseismic monitoring.

Moomba-193 is currently drilling ahead at 2,374 metres. This well is planned to drill a 900 metre horizontal section in the Murteree Shale which will be fracture stimulated with microseismic monitoring to be undertaken from the nearby vertical Moomba-192 well.